Petty cash
Petty cash (alternatively known as petty cash fund; hereinafter, the Fund) is fund or source that allows payment of small amounts without the writing of checks. In physical form, the Fund can represent a petty cash box. In electronic form, the Fund can represent a petty cash card.
A business can keep cash in a safe place for the purpose of making small purchases like milk, stamps, pens etc. The Fund is monitored carefully by the bookkeeper. All money paid out must be recorded in the petty cash book so that the expenses can be included in the accounts, and when the cash runs low it will be topped up with an injection of more cash.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Petty cash fund. Fund (source) that allows payment of small amounts without the writing of checks.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
